Operations:StrongCultivation: N/A
Current production: exact figure not available. 100,000 kgs (912,000 sf) by end 2018.
Future production: Max potential is 400,000+ kgs
Distribution: N/A
Direct sales: Yes, it has a large number of current patients

Integration/Diversification: NeutralVertically integrated: Yes, cultivation and distribution (not sure how much direct sales)
Horizontally diversified: Not much. Most focus is on cultivation. Some medical R&D,

Branding: NeutralThe company launched a new cannabis brand called CANACA™, celebrating Canadian roots and pride as the country becomes the world’s first G7 nation to federally legalize cannabis for adult-use.

Tilray signed an agreement with Sandoz Canada, a division of Novartis, to create and sell co-branded and co-developed non-combustible medical cannabis products.

Financings:StrongThe company completed its IPO in July selling 10.3 million shares of Class 2 Common Stock to the public for $17.00 per share. Just a month later, the stock now trades at US$62, a 360% rise. Tilray netted US$163.6 million on the IPO. Proceeds will go to build out cultivation capacity, repay debt, and for future acquisitions and working capital.

Prior to the IPO, it raised US$55 million of Series A funding from institutional investors.

Risks:All cannabis stocks present risks due to the relative newness of the company and market. The company is not yet producing real profits, only revenue. It remains to be seen whether Tilray will succeed in the competitive market to emerge as one of the successful cannabis companies in the coming year or two.

Recommendation: Neutral

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Previous ProjectThe Cronos Group

Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”